Tandberg shareholders call on Cisco to raise bid

The war of words between Cisco's senior management and a group of Tandberg shareholders arguing
over the value of the US vendor's proposed $3bn take-over of the Norwegian firm has entered a fresh
phase.

Earlier this week, Cisco's chief strategy office Ned Hooper hit back
at a group of shareholders, thought to control about 24%, which were calling for an increased offer
for the video conferencing specialist.

"Cisco's offer represents a 38.3% premium to the closing share price on July 15, one day prior
to reports of a possible transaction. The price also represents a 102% 12 month return for Tandberg
shareholders, far surpassing global market returns," he said on Tuesday.

But as previously reported in MicroScope,
a select group of Tandberg shareholders have been holding out against the offer which needs to be
concluded next Monday.

But in an open
letter penned by mergers and acquisitions advisors Panta Capital which is representing
shareholders addressed to Hooper and Cisco CEO John Chambers a counter argument was set out calling
for an increased offer.

"We also believe that in this specific case your offer does not
reflect the true value of Tandberg's business prospects nor does your offer reflect the premium to
market value that you claim it does," stated the letter.

The letter goes on to argue that the date from which Cisco dates its valuation and the premium
it argues it is paying above that value is misleading.

"Given your conviction that videoconferencing will become the core
of the $34bn collaboration market, we believe the NOK153.5 per share offer undervalues the
significant growth profile of Tandberg, the market leader of the video conferencing infrastructure
market,"the letter states.

"We believe that a higher, more appropriate price for the
acquisition of Tandberg, taking into account its growth profile and the substantial scope for sales
and cost synergies, is not in conflict with Cisco's respect of the principles of prudence and
financial fairness," it concluded.

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